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1) Firstly, find out which concepts discussed in the class are visible in the financial...

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Accounting

1) Firstly, find out which concepts discussed in the class are visible in the financial statements. For example: We have discussed materiality concept in the class which states that items of material nature are required to be shown in the financial statements whereas immaterial items need not be shown separately. This is the reason why the amounts in the Income Statement or the Balance Sheet are rounded off in thousands or Lakhs rupees. Similarly you will find other concepts are also used in the financial statements. Identify them and show where they are used.

2) There are many users of accounting information and they need different types of information for different purposes. The employees are interested in the financial number to see if they can expect any increment/bonus, etc. Government is interested in the profits and taxes to see if the tax policies need a change or not. Identify some more users of accounting information and mention what type of information they will be looking for in the financial statements.

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